ENTREPRENEURSHIP

• Is a proactive process of developing a business venture to make a profit.

• It involves seeking opportunities for a market establishing and operating a
business out of the opportunity, and assessing its risks and rewards through close
monitoring of the operations.

ENTREPRENEURSHIP
• With this definition, being an entrepreneur may seem difficult, but it can be
rewarding if the enterprise flourishes.
• Creating a sound business plan, along with efficient and effective operation of
the business, will not only benefit the entrepreneur but also the entire society and
the economy.

ENTREPRENEURSHIP
• An entrepreneur is successful if the business that he or she envisioned has
materialized into a thriving industry with regular customers and financial gain.
• One either decides to maintain his or her business expand. This eventually
reflects on the society and the economy as a whole.
• Here are the societal and economic benefits of entrepreneurship:

1. Entrepreneurship produces more jobs that equate to an increase in national

income.
- Millions of unemployed people will have the opportunities to have a decent
occupation. Small businesses produce jobs and create wealth.

2. Entrepreneurship amplifies economic activities of different sector of society.

- A simple eatery in a rural area and a coffee shop in an urban area both ignite
economic activity regardless of their business scale.

3. Entrepreneurship introduces new and innovative products and services.

- New products and services are always available in the market because of the
ingenuity of entrepreneurs to seek opportunities and improve on them.

4. Entrepreneurship improves people’s living standards.

- How can you look good if not for the services of your nearby salon or barber
shop? How can your day be complete without the food that a nearby eatery
cooks?
5. Entrepreneurship disperses the economic power and creates equality.
- It balances the economy by distributing national income to more businesses
rather than to only few monopolies.

6. Entrepreneurship controls the local wealth and balances regional development.

- It makes sure local resources are used properly and that every area has an
appropriate allocation of resources.

7. Entrepreneurship reduces social conflicts and political unrest.

- Imagine if there are no or only few sari-sari or supermarket store in your area.
All of you will then fight for the food supplies because the store cannot supply all
your needs.

8. Entrepreneurship elicit economic independence and capital formation.

- A country with more entrepreneurs is highly likely to become financially
independent and will less likely need the help of other countries.
- This also applies to families, barangays, & cities. Entrepreneurship creates
wealth instead of borrowing wealth.
WHO IS AN ENTREPRENEUR?
• The word “entrepreneur” has a French origin and was coined from the words
entre, which means

HERE ARE FOUR CORE TRAITS THAT ENTREPRENEURS SHOULD DEVELOP IN

MANAGING AND RUNNING THE BUSINESS

• LEADERS. Successful entrepreneurs always have the heart of a leader. A source

of inspiration to their employees. They must be very humble, approachable,
friendly, and also know how
• COMMUNICATORS. Entrepreneurs know how to use all forms of
communication to effectively share ideas and address certain concerns w/ their
customers or employees.
• SPECIALIST. Entrepreneurs are experts in their chosen business. They are
tactical and are very keen with details.
• PROBLEM SOLVERS. Entrepreneurs possess critical thinking skills and look at
problems as challenges or puzzles that they need to solve.

ENTREPRENEURS or EMPLOYMENT?
 • Entrepreneurship and Employment are two different career paths that a person
can choose depending on his or her personal aspirations and work
characteristics. It is really up to the person

Table 1.1 Pros and Cons of entrepreneurship vs employment

Important career factorsEntrepreneur Employee

1. INCOME • Income generated • Income generated
passively even when • Income usually
the entrepreneur is fixed per month
resting. and increases
• Opportunity income every year
unlimited, depending depending on the
on the success of the employer and the
business. employees.
• Income only earned • Income earned
when the business is whether the
successful business is
successful or
unsuccessful
2. Hiring and Firing • Provide jobs; the • Seeks for a job; is
Organizational owner of the business the one applying
 Setup, and Major and conducts the for a job and is
Key Result Areas talent selection interviewed by the
• Fully responsible for company’s hiring
serving customers, officers.
making the business • Fully dependent on
profitable/sustainable, the employer’s
and providing performance; is at
employee satisfaction. risk of losing his or
• Has the power to her job if the
disengage company does not
nonperforming perform well.
employees applying • Can only work for
the due process policy the current
of disengaging employer
personnel exclusively.
• Can venture into
expansion of business
such as franchising
and buying other
similar businesses.
3. Daily Tasks • Performs all • Has routine tasks
necessary variable and works on
tasks to establish and
 manage a start-up regular or normal
business, which hours
usually takes most of • Follows policies,
the entrepreneur’s procedures, and
time; spend more memoranda from
hours on work than a the employer.
regular employee and
sometimes gets no
sleep.
• Prepares policies,
procedures, and
memoranda for the
business
4. Leisure Time and • Has a flexible • Has a limited
Vacations schedule and can take number of vacation
unlimited number of days imposed by
vacation days. the employee.
(applicable only if the
business has stabilized
already)
5. Taxation • Taxed on the net • Taxed on the gross
income; can claim income; cannot use
taxable income expenses related to
 deduction for the job such as
allowable incurred by food and
the business transportation
• Charity expenses to claim
for deductions
from taxable
income.
6. Comfort level at • Is comfortable in • May be
work doing multiple and comfortable with
challenging tasks and routines and
takes accountability minimal risks; may
with the risks and also be
profits of the comfortable in
business; does not working for the
want to be in a box; company itself.
thinks outside the box
or sometimes thinks
there is no box.

CAREERS in ENTREPRENEURSHIP
 • Entrepreneurship consists of vast career options depending on the passion and
field of interest of the entrepreneur. The saying “when you love what you do, it’s
as if you are not working” is very much applicable to entrepreneurs who
consider managing their business as enjoyment rather than working exhaustively.

Here is a list of the common small businesses in the Philippines.

1. SARI-SARI STORE
2. RICE RETAILING
3. FOOD CART BUSINESS
4. STREET FOOD BUSINESS
5. FLEA MARKET OR TIANGGE
6. ONLINE SELLING BUSINESS

• No successful business started a huge right away. A business starts with an idea.
Once the business is established, the business owner, the entrepreneur, can
choose to expand and explore franchising, entrepreneurship (managing a startup
business in an established business), and acquisition (buying another similar
business or a new business).
 • Franchising is a business arrangement wherein the franchisor, who is the owner
of the business, acquires distribution centers through the franchises or the
afflicted dealers.

Listed below are entrepreneur Philippine’s franchise business options in the

Philippines, which potential entrepreneur can pursue after college or even after
finishing the K to 12 program.

FRANCHISE OR STARTUP BUSINESSES

• Bakeries, bakeshops, bread products
• Bars, Cafes, and coffee shop
• Beverage and confectionery
• Care care
• Food and snacks carts
• Gas station / petroleum product
• General merchandise or retail
• Health and wellness
• School
• Water stations
• Clothing and accessories
• Convenience store
• Drug store and pharmacies
• Fast food establishments.